Business · Companies · 1 hr ago
Lower trading volumes are expected to slow Indian brokerages’ revenue growth
Indian stockbrokers face slower revenue growth in the July-to-September quarter as trading activity weakened.
On the National Stock Exchange of India, average daily index-options premium turnover fell 27% from the previous quarter, while cash-market turnover fell 19%.
New rules for closing auctions and weak market sentiment weighed on derivatives and share trading, amid foreign investor selling and global uncertainty.
Groww’s parent company, Billionbrains Garage Ventures, and Angel One may be more exposed because brokerage fees make up a large share of their income.
Lower trading volumes could reduce profits, since brokers may struggle to grow revenue enough to cover their costs.
Growth in margin-trading services and commodity orders could soften the impact; commodity options turnover on India’s MCX rose 15% over the quarter.
Trading volumes may improve in coming quarters if proposed rules for closing auctions are relaxed.
Indian brokerages are expected to see slower sequential revenue growth in the July-September quarter as trading activity weakened.
Average daily premium turnover in NSE index options fell 27% in the September quarter from the previous quarter.
Average daily turnover in the cash segment declined 19% over the same period.
Analysts said Groww parent Billionbrains Garage Ventures and Angel One may be especially affected because broking makes up a large share of their businesses.
Growth in margin trading and commodity activity could cushion some of the pressure.
- Who
- Indian stock brokerages, including Angel One and Groww parent Billionbrains Garage Ventures.
- What
- Revenue growth is expected to slow as cash and derivatives trading volumes fall.
- When
- The July-September quarter; the article was published on 14 October 2026.
- Where
- India, including trading on the National Stock Exchange of India.
- Why
- Lower trading volumes are weighing on brokers’ core businesses. Weak market sentiment and changes to the closing auction session framework contributed to the decline.
This story does not have two clearly opposing sides.
Cash and derivatives brokerage accounted for 60% of Angel One’s gross income and 73.3% of Groww’s total income.
NSE index-options average daily premium turnover fell 27% sequentially, while cash-segment average daily turnover declined 19%.
Angel One’s cash-segment average daily turnover fell 13.6% sequentially and its F&O average daily premium turnover declined 22.1%, while its commodity average daily premium turnover rose 3%.
- NSE index options
- Average daily premium turnover fell 27% sequentially in the September quarter
- NSE cash segment
- Average daily turnover fell 19% sequentially in the September quarter
- Angel One
- Cash and derivatives brokerage made up 60% of gross income in Q1FY27
- Groww
- Cash and derivatives brokerage made up 73.3% of total income in Q1FY27
- MCX metals and energy options
- Average daily premium turnover rose 15% sequentially in the September quarter
Related
Hyundai Motor Group plans $15.5 billion investment in India over seven years
2 hrs ago · 4 sources
Zoho freezes annual pay increases as AI and server costs rise
1 hr ago · 4 sources
Indian stocks rise after finance minister says she is open to LTCG tax debate
2 hrs ago · 2 sources
SEBI proposes Rs 50,000 fine for firms that do not cooperate with monitors
1 hr ago · 2 sources
What people are saying
Capital market companies do benefit from operating leverage, but its true potential is realised when revenue growth drives profitability rather than dependence on controlling operating expenses.
steady expansion in brokers’ margin trading facility (MTF) books, along with strong commodity orders, could offset some of the pressure from falling equity-market participation.